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Retirement Plans (Tables)

12 Months Ended

Dec. 02, 2012

	2012			2011			2010
	(in thousands)
Service cost	$	942		$	788		$	1,258
Interest cost		1,537			1,454			1,713
Expected return on assets		(1,588	)		(1,447	)		(1,246	)
Amortization of unrecognized net loss		821			524			498
Amortization of unrecognized prior service cost		151			167			226

Total net periodic pension cost		1,863			1,486			2,449
Less: Net periodic pension cost of discontinued operations		—			—			(506	)

Net periodic pension cost	$	1,863		$	1,486		$	1,943

	2012			2011			2010
	(in thousands)
Net loss	$	6,102		$	5,585		$	1,179
Amortization of prior service cost		(151	)		(167	)		(169	)
Amortization of net loss		(821	)		(524	)		(498	)

Total recognized in other comprehensive income	$	5,130		$	4,894		$	512


Settlement (discount) rate(a)	4.72	%	5.48	%	5.70	%
Expected long term return on plan assets	7.38	%	7.85	%	7.85	%
Weighted average rate of increase in future compensation levels	0.00	%	0.00	%	0.00	%

(a): Due to current economic differences in the interest rates in the jurisdictions of the retirement plans, the discount rates used in fiscal 2012 to determine the expenses for the United States retirement plan and Canadian retirement plan were 4.75% and 4.45%, respectively.

	2012			2011
	(in thousands)
Change in Benefit Obligation:
Projected benefit obligation at beginning of year	$	32,525		$	26,580
Service cost		942			788
Interest cost		1,537			1,454
Plan changes		—			127
Actuarial losses		6,869			4,687
Benefits paid		(703	)		(705	)
Expenses paid		(334	)		(302	)
Foreign currency exchange rate changes		176			(104	)

Projected benefit obligation at end of year	$	41,012		$	32,525

Change in Plan Assets:
Fair value of plan assets at beginning of year	$	21,161		$	17,905
Actual return on assets		2,354			551
Employer contribution		1,890			3,787
Benefits paid		(703	)		(705	)
Expenses paid		(334	)		(302	)
Foreign currency exchange rate changes		140			(75	)

Fair value of plan assets at end of year	$	24,508		$	21,161

Funded status	$	(16,504	)	$	(11,364	)

	2012			2011
	(in thousands)
Amounts Recognized in the Consolidated Balance Sheets:
Noncurrent portion of benefit liability	$	(16,504	)	$	(11,364	)
Accumulated other comprehensive income		22,281			17,060

Net amount recognized as of fiscal year end	$	5,777		$	5,696

Accumulated Benefit Obligation and Fair Value of Assets:
Accumulated benefit obligation	$	(41,012	)	$	(32,525	)
Projected benefit obligation		(41,012	)		(32,525	)
Fair value of assets		24,508			21,161

Unfunded projected benefit obligation	$	(16,504	)	$	(11,364	)

	2012		2011
	(in thousands)
Amounts Recognized in Accumulated Other Comprehensive Income:
Net loss	$	21,033	$	15,687
Prior service credit		1,248		1,373

Net amount recognized as of fiscal year end	$	22,281	$	17,060


Settlement (discount) rate(a)	4.00	%	4.72	%	5.48	%
Expected long term return on plan assets	6.93	%	7.85	%	7.85	%
Weighted average rate of increase in future compensation levels	0.00	%	0.00	%	0.00	%

(a): The discount rates used in fiscal 2012 to determine the benefit obligations for the United States retirement plan and Canadian retirement plan were both 4.00%.


Amortization of net loss	$	1,089
Amortization of prior service cost		145

	December 2, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Asset Category
Equity
Mutual funds—U.S. companies	$	10,053	$	—	$	10,053	$	—
Mutual funds—International companies		4,734		—		4,734		—

Total equity funds		14,787		—		14,787		—
Mutual funds—fixed income		8,797		—		8,797		—
Money market funds		924		—		924		—

Total	$	24,508	$	—	$	24,508	$	—

	November 27, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Asset Category
Equity
Mutual funds—U.S. companies	$	7,322	$	—	$	7,322	$	—
Mutual funds—International companies		9,552		—		9,552		—

Total equity funds		16,874		—		16,874		—
Mutual funds—fixed income		3,632		—		3,632		—
Money market funds		655		—		655		—

Total	$	21,161	$	—	$	21,161	$	—

The expense recognized by the Company for such contributions was as follows (in thousands):

	2012		2011		2010

Multi-employer retirement plan expense	$	5,092	$	5,284	$	4,779
Multi-employer health and welfare plan expense	$	3,098	$	3,089	$	2,755

			Pension Protection Act Zone Status(1)			Contributions of Sealy Corporation

													Expiration Date of Collective Bargaining Agreement
	EIN/Pension Plan Number				FIP/RP Status Pending/ Implemented(2)							Surcharge Imposed(3)
Pension Fund	EIN/Pension Plan Number		2012	2011	FIP/RP Status Pending/ Implemented(2)	2012		2011		2010		Surcharge Imposed(3)
						(in thousands)
United Furniture Workers Pension Fund A(4)		13-5511877-001	Red	Red	Implemented	$	1,117	$	1,546	$	890	Yes, 10%	2013 and 2014
Pension Plan of the National Retirement Fund(4)		13-6130178-001	Red	Red	Implemented	$	890		927		1,039	Yes, 10%	2013

(1): The Pension Protection Act of 2006 ranks the funded status of multi-employer pension plans depending upon a plan's current and projected funding. A plan is in the Red Zone (Critical) if it has a current funded percentage less than 65%. A plan is in the Yellow Zone (Endangered) if it has a current funded percentage of less than 80%, or projects a credit balance deficit within seven years. A plan is in the Green Zone (Healthy) if it has a current funded percentage greater than 80% and does not have a projected credit balance deficit within seven years. The zone status is based on the plan's year end rather than the Company's. The zone status listed above is based on information that the Company received from the plan and is certified by the plan's actuary for the most recent year available.
(2): Funding Improvement Plan or Rehabilitation Plan as defined in the Employment Retirement Security Act of 1974 has been implemented or is pending.
(3): Indicates whether the Company paid a surcharge to the plan in the most current year due to funding shortfalls and the amount of the surcharge.
(4): The Company was not listed in the plan's Form 5500 as providing more than 5% of the total contributions for the most recent plan year available.